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Well, I think it's trying to tell you it won't run in Leopard. The only possible thing to do is do a "Get Info" on the program and check the button to run it under Rosetta. Not a guarantee, but it might work. You'll take a speed hit because it would be running under emulation.
Have you tried resetting the prefs? Press ands hold CTRL, ALT and SHIFT (use Mac equivalents) as you launch Elements. You will get a pop-up box asking if you want reset Elements' settings, Yes, you do.